1. Problem Solving / Decision MakingChapter 7 - 1 Problem Solving / Decision Making Kepner-Tregoe The New Rational Manager Chapter 7

2. Problem Solving / Decision MakingChapter 7 - 2 Chapter 7 Contents u Situation Appraisal, Tool for Evaluation u Situation Appraisal Techniques u Situation Appraisal in Practice

3. Problem Solving / Decision MakingChapter 7 - 3 Where to Begin? u When faced with a situation, we may experience confusion and uncertainty over where to begin. u We may struggle to recognize and break apart actions that overlap and are required to address the situation.

4. Problem Solving / Decision MakingChapter 7 - 4 More on Where to Begin u A manager who is skilled at the three basic rational processes of PA, DA, and PP(O)A is more efficient than one who is not. l These three rational processes are analytical in nature - there purpose is to analyze and resolve u But to be more effective, a manager must also be skilled at another rational process: Situation Appraisal (SA) l SA is an evaluative technique leading to the proper selection and use the analytical techniques

5. Problem Solving / Decision MakingChapter 7 - 5 SA Techniques u List threats and opportunities u Separate and clarify concerns u Consider seriousness, urgency, and growth u Determine analysis needs u Determine help needed u See W Fig 16 p 169, B Fig 13 p 165

6. Problem Solving / Decision MakingChapter 7 - 6 List Threats and Opportunities Four Activities u List current deviations, threats, and opportunities u Review progress against goals u Look ahead for surprises u Search for improvement

7. Problem Solving / Decision MakingChapter 7 - 7 List Threats and Opportunities Specific Questions l Where are we not meeting standards? l What problems remain unsolved? l What recommendations are we working on? l What decisions need to be made? l What major projects, systems, or plans are about to be implemented? l What bothers us about …..?

8. Problem Solving / Decision MakingChapter 7 - 8 Separate and Clarify Concerns u Most issues are more complex than they first appear u “It is unlikely that employing the separation step of Situation Appraisal will be a waste of time.”

9. Problem Solving / Decision MakingChapter 7 - 9 Separate and Clarify Specific Questions l Do we think one action will resolve this? l Do we agree on the reason for our concern? l What evidence do we have that this is a concern? l What do we mean by ….? l What is actually happening in this situation? Anything else? l What actions are suggested?

10. Problem Solving / Decision MakingChapter 7 - 10 Separate and Clarify Specific Questions u Together, these questions get below the surface u They shift us from subjective opinion to verifiable information u FACTS and DATA!

11. Problem Solving / Decision MakingChapter 7 - 11 Separate and Clarify Specific Questions u “Without the separating questions, it is entirely possible for people to sit through an entire meeting in the mistaken certainty that their individual, disparate assessments of a situation represent the understanding of the group at large.”

12. Problem Solving / Decision MakingChapter 7 - 12 Consider Seriousness, Urgency, and Growth u A practical and systematic process for determining dimensions of importance l How serious is the current impact on people, safety, cost, productivity, etc.? l How urgent is it to keep the concern from becoming difficult, expensive, or impossible to resolve l What evidence is there that the seriousness will grow?

13. Problem Solving / Decision MakingChapter 7 - 13 Consider Seriousness, Urgency, and Growth u Postpone any concern that ranks low in all three dimensions u “Experienced managerial teams …. can usually pick out the top five (concerns) in a relatively short time.” u Don’t be unnecessarily swayed by activities you enjoy or activities from demanding people.

14. Problem Solving / Decision MakingChapter 7 - 14 Determine Analysis Needs Problem Analysis u Does the situation require explanation? u Is there a deviation from expected performance? u Is the cause of the deviation unknown? u Would knowing the cause help us to take more effective action?

15. Problem Solving / Decision MakingChapter 7 - 15 Determine Analysis Needs Decision Analysis u Does a choice have to be made? u Is there a dilemma around the best action to take? u Do objectives need to be set in order to undertake some activity?

16. Problem Solving / Decision MakingChapter 7 - 16 Determine Needs: Potential Problem (Opportunity) Analysis u Has a decision been made that has not been implemented, and is it necessary to act now to avoid possible future trouble? u Does a plan need to be made to safeguard a decision or future activity? u Can we generate additional value by implementing a plan or decision?

17. Problem Solving / Decision MakingChapter 7 - 17 Selecting the Right Rational Process u The kind of answer we need determines the choice of Rational Process u How much of an answer we need determines whether we will use all the process or only part of it. l Partial use of the rational processes is common

18. Problem Solving / Decision MakingChapter 7 - 18 Determine Help Needed u Often responsibility for resolving concerns must be shared or assigned to others l Who needs to be involved for: u InformationApproval u CommitmentDevelopment u ImplementationCreativity u AnalysisPresentation

19. Problem Solving / Decision MakingChapter 7 - 19 Determine Help Needed (continued) u What needs to be done and when? u Who will do it? u Who will document the process and the results?

20. Problem Solving / Decision MakingChapter 7 - 20 SA in Practice The Cases u Sue’s Reports are Late Again u Crushed Cartons u A Difference of Opinion u The Madge Problem u Replacing Obsolete Equipment

21. Problem Solving / Decision MakingChapter 7 - 21 Chapter Summary u “Far too much time is wasted trying to make sense of concerns that are unactionable collections of concerns, each with its own unique features and requirements.” u Formal and informal use of SA can significantly reduce this waste of time and energy.